Syncona Ltd, (“Syncona” or the “Company”), a leading life science investor focused on creating, building and scaling a portfolio of global leaders in life science, today announces that it has committed £63.5 million in a Series B financing of Resolution Therapeutics (“Resolution”), a portfolio company focused on unlocking the regenerative potential of macrophage therapy for the treatment of inflammatory and fibrotic diseases. Syncona has invested an initial tranche of £22.0 million1, with investment of the full Series B commitment tranched upon the completion of key milestones.
Alongside this investment, Resolution has appointed Paul Sekhri as Chair of Resolution’s Board of Directors. From a career in life sciences spanning over 35 years, Paul brings a wealth of relevant industry experience to Resolution that will support its future growth, with particular expertise in drug development, business development and delivering successful financing strategies. He is currently President and CEO of vTv Therapeutics and was previously President and CEO of eGenesis and Lycera Corp. Paul has significant senior management, executive and non-executive experience, having worked across biotechnology and large corporate pharmaceutical companies, as well as private equity and venture capital firms.
Launched by Syncona in 2020, Resolution is targeting end-stage liver disease (ESLD), a severe form of liver failure, where a lack of effective therapeutic options means that patients often require liver transplantation and often die as a consequence of the disease. To date, the company has published proof-of-principle data from the academic MATCH II study on the use of macrophage cell therapy in ESLD. Based on the strength of this data, Resolution is now focused on advancing its lead candidate, RTX001, an enhanced, next-generation macrophage cell therapy with first-in-class potential for ESLD.
Use of proceeds from the Series B financing will support the clinical entry and development of RTX001, with a Phase I/II trial expected to start in Q4 CY2024. Following this financing, Resolution Therapeutics is funded to deliver data from this trial, anticipated in CY2026, a key value inflection point with the potential to drive significant NAV growth for Syncona. Proceeds will also be used to develop the company’s manufacturing platform, expand the pre-clinical pipeline, and further strengthen the management team, following several key recent appointments, including Dr Amir Hefni as CEO, Simon Ramsden as CFO and Dr Clifford A. Brass as CMO.
The Series B financing brings the total amount raised by Resolution Therapeutics to £101.4 million[3]. Following the drawdown of the full Series B financing, Syncona’s ownership stake in Resolution will be 82.6 per cent. Including the drawdown of the first tranche of investment of £22.0 million, Syncona’s holding value of Resolution is now £63.6 million. Following the financing, Syncona Investment Partner Gonzalo Garcia has joined Resolution’s Board of Directors, joining Managing Partner Edward Hodgkin.
Edward Hodgkin, Managing Partner of Syncona Investment Management Limited and Non-Executive Director of Resolution, said:
“The data that Resolution has generated to date in this emerging area of medicine is encouraging and, in our view, demonstrates the potential that macrophages have in treating end-stage liver disease. This is a potential first-in-class product being developed for a disease where patients have no effective therapeutic options and typically face a liver transplant or further deterioration of their condition, which is often fatal. We are delighted to continue to support Resolution with our commitment to its Series B financing, in-line with Syncona’s focus on allocating capital to clinical-stage assets and assets approaching clinical entry. We are also very pleased to welcome to Resolution Paul Sekhri, who brings a demonstrable track record in supporting companies through the development cycle and will act as a valuable sounding board for the company’s growing executive team.”
Amir Hefni, Chief Executive Officer of Resolution, said: “As we prepare to advance RTX001, our lead investigational macrophage therapy with first-in-class potential for the treatment of end-stage liver disease, into the clinic this year, we are grateful for Syncona’s continued support. In addition, we are pleased to welcome Paul Sekhri to our Board of Directors. Paul brings a wealth of experience leading top-tier companies to develop breakthrough medicines, including novel treatments for patients with autoimmune disease. The team and I look forward to working with Paul to bring novel macrophage therapies, like RTX001, to patients in need.”
Paul Sekhri, Chair of Resolution, said: “I am delighted to join Resolution at such an exciting time as it prepares to enter the clinic with RTX001 and expand pipeline efforts into new indications where significant unmet patient need exists. I look forward to collaborating with Amir, the entire Resolution team and supporting the company as it expands its leadership in macrophage therapy.”
[1] This investment includes a £12.0 million convertible loan note provided by Syncona in March 2024, which converted to the Series B financing on successful closure of the round.
2 This holding value incorporates value accrued through interest from the convertible loan note and through its conversion to the Series B financing.
3 Assuming full investment of the Series B commitment, which is tranched upon the completion of key milestones.